You have just been offered a contract worth

$ 1.05$1.05

million per year for

55

years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is

12.1 %12.1%.

You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive

NPV?

The most you can pay for the equipment and achieve the

12.1 %12.1%

annual return is

$nothing

million.(Round to two decimal places.)

You have just been offered a contract worth $1.05 million per year for 5 years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 12.1%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV? The most you can pay for the equipment and achieve the 12.1% annual return is $_million. (Round to two decimal places.)